Dragon Capital Helps List MHP Shares on Ukrainian Exchange
Dragon Capital, in partnership with the Ukrainian Exchange and Myronivsky Hliboproduct (MHP), announce the start of trading in MHP shares on the Ukrainian stock market on Feb. 2, 2015. Dragon Capital oversaw technical and legal aspects of MHP’s dual listing process, which the company itself initiated.
“For several years, stock market participants have jointly worked on creating a framework for dual listings to make it possible to trade shares of Ukrainian companies which originally went public abroad. Finally, our persistence has been rewarded. From now on, shares of foreign-listed Ukrainian companies will be available for trading on the domestic market,” said Oleh Tkachenko, President of the Board of the Ukrainian Exchange.
“Our company’s production assets are located in Ukraine, and we are very happy to know that domestic investors will now be able to own our shares. This is a huge step forward both for the Ukrainian stock market and for our company,” said Viktoriya Kapeliushna, Deputy President of the Bard and Chief Financial Officer of Myronivsky Hliboproduct.
“MHP’s dual listing is a real breakthrough for the Ukrainian stock market. We are happy to have accomplished this project after putting so much knowledge, energy and effort into it. The Ukrainian market now has not just another security to trade but a vivid example of best corporate governance practices. This is an example for other local companies to follow and a positive sign for investors,” said Dmytro Tarabakin, Dragon Capital’s Managing Director.
Presentation (in Ukrainian)
Information on MHPS.Ashares:
London Stock Exchange code: MHPC
Issuer’s website: http://www.mhp.com.ua/
Ukrainian Exchange code: MHPC
Lot rate: 10 securities
UkrainianExchange is a Ukrainian shares and derivatives center. Starting in March 2009, the exchange became a leader on the Ukrainian stock market over the first few months, being the first to have launched an order-driven market, internet trading, a repo market, central counterparty clearing, and a derivatives market. The Ukrainian shares index is calculated from May 26, 2009, the opening date of the Ukrainian Exchange. The initial value was adopted equal to 500 points. Today, the UX Index basket includes 10 most liquid shares. A futures contract for the UX Index is the most liquid instrument on the Ukrainian market.
About Myronivsky Hliboproduct
MHP is the leading producer of poultry products in Ukraine with the greatest market share and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP’s franchise outlets). Vertical integration reduces MHP’s dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale. To support its sales, MHP maintains a distribution network consisting of 11 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times.
MHP also has a leading grain cultivation business growing corn to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.
Since May 15, 2008, MHP has traded on the London Stock Exchange under the ticker symbol MHPC.
About Dragon Capital
Dragon Capital is one of Ukraine’s leading groups of companies working in the field of investment and financial services, offering a comprehensive range of services in equities and fixed income sales, trading and research, investment banking, private equity and asset management to institutional, corporate and private clients. Established in 2000, the company has been minority-owned by Goldman Sachs, one of the largest global banks, since 2007. Dragon Capital accounts for the largest share of turnover on the Ukrainian stock market carrying out approximately a third of reported transactions. The company also dominates the Ukrainian debt market, with Dragon Capital’s DCM team advising leading corporates and banks on raising debt through local bonds, Eurobonds, structured finance and bilateral debt. The company’s fixed-income sales and trading business acts as a market maker in both domestic and international debt instruments, trading actively with international and domestic investors. The company has completed more than 100 deals, including IPOs, private placements, M&A transactions and debt financings, since 2005, raising over $3.4 billion.